1.

What formalities need to be fulfilled for a companies having share capital to commence business?

Answer»

A public limited company having its share capital has to pass through two more stages. One of them is capital subscription, steps to be taken at this stage are listed below:

  • The fulfilling formalities to raise necessary capital.
  • Following the SEBI guidelines in this regard. Issuing prospectus.
  • Appointing official banker of the company for receiving application from the investors,
  • Passing resolution for making allotments by director.
  • Despatch allotment letters to allottees.
  • Filing allotment returns with the Registrar.
  • Issuing share certificates in exchange for their allotment letter.
  • Ensuring collection of minimum subscription.


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